Potential Impact of Biological Nitrogen Fixation: The Case of Corn

Catherine Halbrendt and Melvin Blase

Review of Agricultural Economics, 1989, vol. 11, issue 1, 145-156

Abstract: With the discovery of gene-splicing technique and advances in biotechnology, biological nitrogen fixation in corn could occur. This study evaluates the impact of BNF on U.S. nitrogen fertilizer demand and corn-planted acreage. An econometric model was constructed. Three substitutive levels of 25, 33 and 50 percent reduction of current application rates were examined. The results showed a decrease of 18, 25 and 36 percent of nitrogen fertilizer demand and about 1 percent in acreage planted as a result of lower production costs.

Date: 1989
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